Sajid Javid lights a fire under business and energy efficiency law
The Business Secretary has promised to make £10 billion of savings from lightening regulation across numerous sectors, including energy.
Business Secretary Sajid Javid is reviewing bureaucracy across the UK’s energy landscape. He has committed to cutting red tape in the energy, waste, agriculture and mineral extraction sectors.
Both the Department of Energy and Climate Change (DECC) and Ofgem will be heavily involved in the streamlining. DECC itself already faces internal cuts and policy upheaval; the red tape review may add to and work alongside these.
The reviews aim to claw back £10 billon over the next five years. “The government’s pledge to cut £10 billion in red tape, over the course of this parliament, will help create more jobs for working people, boost productivity and keep our economy growing.” said Javid.
What will the changes for businesses in the energy sector be?
Mr Javid says this will be a wide-ranging review. It will cover business regulation and its enforcement by government and the energy regulator.
The investigation will seek industry views on complex licencing requirements, and burdens placed on new market entrants. It will seek clarity on whether guidance or requirements are unclear, confusing or unnecessarily burdensome.
The Government’s web pages on Cutting Red Tape in the energy sector, published just days ago [July 17, 2015] lay out the broad set of measures for consultation.
DECC is specifically asking businesses in the energy sector for opinion on:
- What compliance burdens do you face in the sector? Could regulatory aims be achieved more efficiently in other ways?
- How could regulation be improved to meet the challenges of the future? Is there a way the regulatory framework could more effectively support innovation and disruptive business models
- Can innovation reduce burdens on business through more efficient delivery?
The announcement comes during a period of hectic activity at DECC. Energy Secretary Amber Rudd has outlined DECC’s 2015 priorities today (July 21, 2015). She faced challenging questions on the failing Levy Control Framework and how DECC will pay for UK decarbonisation.